ORDER NUMBER
E-26-18
IN THE MATTER OF
the Utilities Commission Act, R.S.B.C. 1996, Chapter 473
and
FortisBC Energy Inc.
Section 71 Filing of a GasEDI Base Contract with
Uniper Trading Canada Ltd.
BEFORE:
D. J. Enns, Commissioner
R. D. Revel, Commissioner
on November 22, 2018
ORDER
WHEREAS:
A. On October 25 2018, FortisBC Energy Inc. (FEI) filed with the British Columbia Utilities Commission (BCUC) a copy of a fully-executed GasEDI Base Contract including (i) the cover sheet, and (ii) amendments called “Special Provisions to The GasEDI Contract for Short-Term Sale and Purchase of Natural Gas”, negotiated between Uniper Trading Canada Ltd. (Uniper) and FEI (all together referred to as the Contract);
B. By Order G-130-06 dated October 27, 2006, the BCUC approved the Rules for Natural Gas Energy Supply Contracts (Rules). The Rules are intended to facilitate the BCUC’s review of Natural Gas Energy Supply Contracts pursuant to Section 71 of the UCA;
C. FEI uses the GasEDI Base Contract dated October 26, 2000, together with FEI’s standard provisions, as the starting point for negotiations with counterparties with whom FEI wishes to execute off-system sales or purchases agreements. The GasEDI Base Contract and FEI’s standard provisions are set out in Rate Schedule 30, as approved by BCUC Order G-197-11 dated November 24, 2011, and subsequently updated through Order G-19-16 dated February 11, 2016. The GasEDI Base Contract and the provisions executed with the counterparty form the underlying basis of the contract with the counterparty. Each gas purchase or sale transaction is then confirmed via a transaction confirmation deal sheet described in section 9 of the GasEDI Base Contract and presented on page R-30.19 of FEI’s Rate Schedule 30;
D. By Letter L-19-18 dated July 23, 2018, the BCUC accepted the FEI Annual Contracting Plan (ACP) for the 2018/19 gas year commencing on November 1, 2018;
E. By Letter L-28-18 dated October 26, 2018 the BCUC accepted an amendment to FEI’s 2018/19 ACP, which allowed FEI to transact with counterparties in the region for up to 120 TJ per day of physical term supply arrangements for the period November 1, 2018 to March 31, 2019, in order to make up for the loss of FEI’s firm T-South Huntingdon Delivery capacity;
F. FEI requests that the details of the Contract be kept confidential due to its commercially sensitive nature and to ensure that FEI’s ability to obtain favourable commercial terms for future natural gas contracting is not impaired; and
G. The BCUC has reviewed the filing and is satisfied that the Contract is consistent with FEI’s 2018/19 amended ACP and is in the public interest.
NOW THEREFORE pursuant to section 71 of the Utilities Commission Act and the Rules for Natural Gas Energy Supply Contracts, the BCUC accepts for filing the GasEDI Base Contract between FEI and Uniper. The BCUC will keep the filing confidential as it contains commercially sensitive information.
DATED at the City of Vancouver, in the Province of British Columbia, this 22nd day of November 2018.
BY ORDER
Original signed by:
D. J. Enns
Commissioner